Hi. The most common reason for bad breath is improper maintenance of oral hygiene. ask your child to brush properly twice a day. He also needs to start rinsing his mouth after every meal or snacks. This is as important a brushing.
Regarding the milk tooth, please do not worry. They will fall off naturally. No treatment is required if it is already shaking.
Next Steps
He can do hot water gargles three times a day to reduce gum inflammation and bring down bacteria causing bad breath.
Health Tips
If this doesn't help visit your Dentist for a round of Teeth Cleaning